The Duterte government is revealed to have sought for Bangko Sentral ng Pilipinas help again. This time, the Philippine government asked for ₱540 billion loans as the country still falters under the pandemic crisis. Despite the concerning amount of loans Philippine currently own, the country is confident of repaying them all.
Philippine seeks BSP’s help for more loans
BSP Governor, Benjamin Diokno, revealed earlier today that the national government requested for more budget support. The request filed on Wednesday marks the second time the government asks for a loan from BSP. The additional loan is due by 29th December 2020 at zero interest. The request is currently awaiting the central bank’s Monetary Board approval.
Philippine’s total loan accumulated
According to CNN, Philippine accumulated around ₱9.62 trillion of debt in August. With the country’s unending crisis, the digit swells up to ₱1.59 trillion so far this year as the national government asked for additional ₱450.9 billion in September. Philippine’s total debt is currently 24.4% more severe than last year’s end level at ₱7.73 trillion. With the current speed, the Budget Department foresees the country to hit ₱10.16 trillion of debt by December.
Will Philippine retreats the situation?
Despite the ballooning debt, Diokno assures that the country will be able to escape the crisis. Quoted from CNN Philippines, Diokno stated during a Malacañang briefing that “there’s no threat that we will not be able to pay our dues”.
Accordingly, Philippine’s government has downsized almost 8.8% guarantees to ₱447 billion in comparison to 2019. The country has also received funds from foreign sources. CNN Philippine noted the country accounted around ₱2.9 trillion funds from currency debt papers issued to global players and foreign loans. Philippine’s Peso is also showing dominance in its peso-dollar rate, keeping the country’s economy safe from drowning.
The Department of Finance added that it will prevent government debt from exceeding half the size of the local economy. Officials further expressed its hope to allocate more funds to COVID-19 mitigation.